Snus and moist snuff
Swedish Match has a market leading position in the Scandinavian snus market. In the US, Swedish Match is well positioned as the the third largest manufacturer of moist snuff and is a significant player in the market for snus and non-tobacco nicotine pouch products.
In Scandinavia, Swedish Match has experienced growing snus volumes in both the Swedish and Norwegian markets in 2017. On the US moist snuff market, the Company offers attractive alternatives in two of the fastest growing formats – pouches and tubs. In the US, the snus market continued to grow, and Swedish Match has outpaced the market. While the market for nicotine pouches without tobacco is relatively new, the volume development for the Company’s products is promising.
|Key data, MSEK||2018||2017||2016|
|Operating margin, %||45.6||43.0||41.6|
|Swedish Match shipment volumes, millions of cans||2018||2017||Change, %|
|Moist snuff, US||126.3||127.4||-1|
|Snus and nicotine pouches, outside Scandinavia1)||25.2||13.2||91|
1) Includes snus volumes from date of acquisition for V2 Tobacco (August 31, 2017) and Gotlandssnus (August 22, 2018).
Share of Group total:
Operating profit: 57%
Snus: General, Göteborgs Rapé, Kaliber, Kronan, Ettan, Grov, Catch
Nicotine pouches without tobacco: ZYN
Pouch products with neither nicotine nor tobacco: Onico, Qvitt
Snus: General, G.3, The Lab, Nick & Johnny
Pouch products with neither nicotine nor tobacco: Onico
Moist snuff: Longhorn, Timber Wolf
Nicotine pouches without tobacco: ZYN
Sweden, Norway, the US
Sweden, the US
Swedish Match’s vision is of a world without cigarettes, providing consumers enjoyable alternatives that are both satisfying and dramatically safer than smoking. Smokeless alternatives, including snus and moist snuff, as well as innovative products (such as nicotine pouches without tobacco) are an important part in moving toward the vision. As snus consumption grows, cigarette consumption declines. In Scandinavia, consumer preference for snus versus cigarettes has increased over the years, especially among younger adults in Norway. Swedish Match is dedicated to further developing the growing snus categories in Scandinavia, the US, and potentially other markets, thereby contributing significantly to improved public health.
The Company’s major competitive strengths include its superior quality products, in depth know-how, and ability to quickly adapt to evolving consumer needs. The Company’s strengths also include offering both traditional and innovative high quality products with both well established and new brands, and its capabilities in the areas of analyzing the needs of consumers, conducting research, and servicing customers.
Swedish Match will leverage its unique Snus and moist snuff platform, and continue to innovate and develop new and improved products with outstanding quality and value. Swedish Match will endeavor to drive category growth and maintain its leading position in Scandinavia. It will also work to develop the snus and nicotine pouch categories in the US and establish a strong presence in the market. Swedish Match will work to build on its position in the US moist snuff market, targeting the faster growing segments. The Company will explore opportunities for Swedish snus and other innovative smokeless products in both existing and new markets.
(Note: Comments below refer to the comparison between full year 2018 vs. full year 2017).
Sales for the product segment grew by 10 percent in local currencies. Operating profit increased to 2,791 MSEK (2,358) and included net operating result for snus and nicotine pouches outside Scandinavia of 61 MSEK (negative 167).
In Scandinavia, shipment volumes grew by more than 6 percent. Swedish Match estimates that its underlying organic Scandinavian snus volumes (excluding V2 Tobacco up to the end of August, and Gotlandssnus) increased by approximately 3 percent. Operating profit for snus in Scandinavia grew on increased volumes and improved pricing offset somewhat by higher manufacturing costs. In the US, sales and operating profit in local currency for moist snuff increased. For snus and nicotine pouches outside Scandinavia, the favorable financial development resulted primarily from higher volumes and improved pricing for both snus and ZYN in the US, but also benefited from lower marketing costs for snus in the US.
See financial tables by product area for more financial information.